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FOX Business After the Bell

News/Business. Stock market updates. New.

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01:00:00

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480

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Us 11, S&p 11, Cyprus 9, Nike 7, Google 6, U.s. 5, Adam 5, Dan 4, Comcast 4, Europe 3, Cleveland 3, Chicago 3, Oracle 3, Starbucks 3, Intuit 2, Payden & Regal 2, Legalzoom 2, Cme 2, Neil 2, Peter Barnes 2,
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  FOX Business    FOX Business After the Bell    News/Business. Stock  
   market updates. New.  

    March 21, 2013
    4:00 - 5:00pm EDT  

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there is a one-month chart of the dow. you see a little bit of a build here at the end but unfortunately that's what we're looking at as far as the major market after as -- averages go. safe haven consumer staple sector and you also have the telecom sector. these are higher for the week. investors are really looking to avoid risk as you can see. here is how the two are playing out right now. but again, consumer, telecom, and there has been weakness in technology today. we're seeing weakness in homebuilders even though we got the home sales data at this was fairly positive. here to wrap up the here, adam shapiro and sandra smith sandra: we're in for david and liz this afternoon. nicole petallides she has
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got it all. she is down on the floor of the new york stock exchange. nicole, a down day for the markets but there are some names bucking the downward trend. yahoo! is one of those. >> absolutely are. over my shoulder, you see the congressional medal of honor winners. a great day on wall street as well. oppenheimer raised their target to 27 bucks to 22. ali baba which have ipo and yahoo! owns a 24% stake. adam: nicole. saw a pullback for boeing. they are conducting the test flights for the 787. they weathered storm so far. will they continue? >> they will do test flights with the new revamped battery. they have done well so far. they managed to stay in the green up 12% despite all the issues. we'll see how test flights go. sandra: we're waiting on earnings from nike. this is a big consumer to watch. how are is the stock looking ahead of the results? >> down right now. a winner year-to-date. that will be a key one to
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watch. adam: oracle a drag on the tech sector. one analyst said a hiccup with the earnings report but they're down what, 9%? >> what a big loss for oracle. [closing bell rings] they took down the whole tech sector today. sandra: well the bells are ringing on wall street. let's take a look how stocks are finishing up on this thursday afternoon. the dow jones industrial average down about 91 points right now. we'll see how it settles at 14,421. the s&p 500 down even more percentage wise, down 13 points. the nasdaq, the biggest of the three major averages. the biggest loss, down 32 points. a loss of nearly a full percent. the russell down eight, adam. adam: we're watching oil retreat as german manufacturing output dropped unexpectedly signaling that the eurozone crisis may be impacting that region's biggest economy. crude fell 1.1% settling, $92.45 a barrel. sandra: miners outperforming
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as gold ends the session higher, still above the $1600 mark which everybody is watching im gold and newmont mining, barrick gold, kinross, all top performers up, between two and 4%. adam: you like banks? financial sector feeling the squeeze again as the turmoil in cypress continues to play out without a resolution. goldman sachs and morgan stanley, they led the declines. sandra: who needs a wallet? the mobile payment industry is one of the fastest growing areas in tech. $171 billion. we're telling you how to add some cash it your portfolio by investing in this cashless trend. adam: we've got new data out showing more consumers are cutting the chord and saying good-bye to pay it. v services. time warner, are you listening? does the trend mean you should say good-bye to cable stocks? a top on lift tells us which names will feel the pain and which ones will ride this trend to cash success.
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"after the bell" starts right now. sandra: first we'll tell you what drove the markets with today's data download. stocks sinking into the red as investors eye cyprus. the dow is on track to post its first weekly loss in five weeks. while the s&p 500 and the nasdaq are on track to snap a three-week winning streak. technology and materials led today's decline while telecom was the only s&p sector to post a gain. existing home sales touching a three-year high in february adding to signs the housing market is recovering. the national association of realtors reporting sales of previously owned homes rose 0.8% to an annual rate of nearly five million units. the number of americans filing new applications for unemployment benefits edging higher last week, rising 2,000 to seasonally adjusted 336,000. despite last week's climb the four-week average hit
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the lowest point in five years, indicating an improving labor market. adam. adam: we have got mark sebastian in the pits of the cme other market panel. dan, january any capital markets technical research director. first let's start with mark at the cme. so, what are you making of all of this? we close in the red. all three index, at one point we were down triple digits. why did we go so far and pull back a little bit? >> all this sign -- cyprus news coming out. first there is news conferences. the markets are being held hostage by a speck of the economy. imagine the u.s. completely shutting down operations because of what is going on in detroit right now? that is basically what we're dealing with right now. you know, really kind of holding up the markets from, be impressed we're only down 12. six months ago this could have really, really caused the markets to tumble and
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they're not. i think it shows some resiliency here but we're all kind of on eggshells waiting to see what happens here. i think we get some resolution, with which we probably will. that's when we'll be able to see the s&ps really break out. we'll see dow rebreak new highs. s&p five final by break break all-time high. sandra: you sound very optimistic. at the same time we've had many guests on the fox business network saying it would be healthier for this market to see some sort of a correction in order to continue to move higher. are you fall into that same realm? >> yeah. that is like saying punching in the stomach will toughen me up. i don't really buy into that. so, no, i don't think it is healthier. there is so much cash on the sidelines. maybe you can make some, that's why we keep bouncing. we get, we get these selloffs. there are some people that missed the front end of january part of this rally, that on these pull backs, you see cash start to move
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in because there are a lot of hedge fund, money managers, mutual fund, that are chasing this s&p performance. and they are thus far pretty far behind so you've got a pretty good bid underneath the market at a couple of levels. and i think that is what is holding us up right now. adam: but at the end of the day are earnings going to be there to keep them coming? they're buying on the dips and they missed it? >> you know, i think earnings have been there. i don't have a real problem with growth. we have nike coming out today. you know, we had oracle miss pretty bad yesterday. so i'm kind of interested in how everything pieces together. we had a pretty good earnings season so far but we've got retailers coming up. i want to know what happens there. sandra: as you're saying that, mark, we're showing nike, we're awaiting on earnings from nike in a few minutes from now. we'll bring our viewers all of that as it breaks. we'll see you in a few minutes as the s&p 500 futures close.
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let's bring in our market panel. john and dan. sandra: i knew i would stumble on that. come on, adam. thanks for saving me anyway. start with you, first, john. according to some notes i read from you today, you think that the market, where it stands today is actually fairly priced. you believe, you're rather optimistic you think things could head higher. what keeps you up at night? what could get in the way of things looking, bright in the future? we sold off somewhat significantly today. >> well, what i actually said was given current earnings and given current interest rate levels and current inflation level that the market was fairly priced but, we still are of the view that the market is in a secular trading range and it is up towards the top of that. and we, we just believe that with the aggressiveness of the federal reserve and now with the japanese central bank and then with the cyprus situation exacerbating the european
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banking situation, we think that aggressive monetary policy is going to lead to inflation and we're much more bullish on gold and commodities at this point. adam: well, dan, you say that the united states has a safe haven but you're still in the camp that says there will be a correction. chief economist at oppenheimer fund saying five to 8%. you don't see it going that high, do you? >> actually we could. initially we're looking for three to 5% hit on the s&p. that would get you down to around 1485 on that benchmark but, you know, certainly the way things have been moving for the first quarter of the year you could actually take a more significant hit. so any break there, and, we could see the possibility for a 10% correction on the s&p that would get you down to the low 1400 range. seems like it is possible. typically you look first year, presidential election cycles, even when it is an encumbent, they tend to be
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front-end loaded. all the gains come first half of the year. once you hit the summer season the market tends to trail off. based on what we've done year-to-date without any significant correction we're probably due something t could be bigger than three to 5%. sandra: all right. so john, taking it from stocks to commodities you mentioned how you're rather bullish on gold and some other commodities at some point. how do you play that? what are some of your big picks right now? >> we're very bullish long term on the oil sector because we think there will be a supply problem globally. therefore either oil companies in secure areas such as anadarko, or also some of the more sophisticated oil service companies that are able to better define reservoirs, figure out ways to get more oil out of existing reservoirs, deep offshore drillers. we like companies like drill quip and geospace which have very sophisticated
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technology. adam: dan, you like to follow the banks, don't you? who is on your list of looking good? >> absolutely i think the banks look great here. we've been on this call for a while. i think they will emerge as a new market leader. whether you're early stage bull market cycles which i think we could be here based on all the breakouts, new leadership tend to emerge. not always the old leaders. last year it was consumer. we're seeing this year growth in other areas. adam: are you pegging keybanc? i used to live in cleveland. love keycorp. aren't they ones you would pick? >> absolutely. bac i know that isve from everybody's favorite. keycorp is a huge one. it has a great chart. we're also looking if you want to stay awayyfrom larger cap we're looking at regional banks. we like fulton as well. look across the whole spectrum of any capsize within the banks. they are all under accumulation, in my opinion. i don't think you can go wrong with that sector as a relative play here. sandra: dan, some of what you're saying might make
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everybody a little nervous. you're in favor of the consumer names. you say to avoid some consumers names which have been very hot lately. the consumer is kind of been back. they have been showing. they have been spending but you say this is not the place to put your money right now? >> well, it's, you know not that we're out there shorting the sector but we do have it as an underweight. we tend to think the consumer is going to grow, albeit more slowly than some other sectors. we think there is new industries emerging and they're providing a lot of growth. this comes in the industrials, manufacturing. we think tethered to thatt3 call would be the banking sector as well. or manufacturing, that group has been so marginalized in this country for the last who years, as they're growing, they're not really moving headline economic numbers. everybody is still so focused on the consumer. it will grow. but think it will surprise people how slow it grows going forward. we have that group as underweight.
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we think there are better places to put your money. adam: let me ask as we wrap up, i read a statistic, in jon and february we saw inflows into equities something like $55 billion. isn't that a red flag to investors now is not the time to maybe be buying? >> well, possibly. we're focusing on the consumer growth and emerging markets space. we think there is just an explosion going on with the middle class in china and other of the larger emerging economies and that's where the demand is. and they're moving from eating grains to eating meats. which puts more pressure on the grain markets. there's, just a very powerful trend there. chinese middle class will probably triple this decade. sandra: all right. guys. thanks for joining us on the market panel, john hummel. and dan. >> we have much more for you. a slew of economic data today showing the economy may be on the upswing? but sequestration cuts only began this month.
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making many of the data points backward looking indicators. are we still at risk of a significant slowdown? jeff cleveland of paid den and requiring gel weighs in. sandra: go to starbucks, see people raising their cell phone to make payment. that is up to $171 billion and it is growing quickly. we'll tell you how to boost your portfolio on this money trend. ♪ [ indistinct shouting ]
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adam: s&p futures closing. let's head to mark sebastian in the pits of the cme. mark? >> we gave away a tick. nothing major. the way the vix is pricing at 14, less than one% a move a day over next 30 days. to get there you have to assume cypress is some sort of resolution happens over
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the next couple days. otherwise the vix is severely underpriced. so the way it is pricing itself is 80 to 85% odds something gets done between now and monday. adam: all right, mark, thank you very much. nicole petallides on the floor of the stock exchange. shares of mon introduce very fell sharply because of profit guidance. what is going on there? what did they advise? >> mow vaud day -- movado is very popular. the stock is down 11% today. they came in with quarterly numbers. down about 26%. one of the reasons they saw this because margins dropped. they did have improved sales but they were improving the margin. the stock dropped about 11%. over 52 weeks it is winner for movado watches and accessories and the like, up 67%. movado watches they're not cheap, i can tell you that
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but the margin strength. back to you. adam: thank you, nicole. sandra: let's throw up a nike after-hours trading board because the stock is skyrocketing in after hours trading. we have results out. a big beat. 73 cents from continuing operations that compares 67 cents analyst were looking for. we're talking about a nickel beat for profits. revenue is coming in at $6.2 billion. that would be just slightly below the expectations of $6.23 billion. pretty much right in line as far as sales are concerned but again a decent beat on the profit number. that has got the stock up 5%. looks like climbing, ad many today, in after-hours trading. so some fret good results here. by the way the stock was down all day heading into these results there was a lot of concern not here at home. north american growth is very strong. adam: europe. sandra: europe there has been a slowdown. >> you said earlier, the retail, the consumer is back, people are shopping, counter
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to what you see at wal-mart and some concerns but they like this stock. sandra: a lot of buzz coming out from nike. they came out with cool shoes. nike town has the big buzz. new running shoes. the fly nit, there is excitement about that. that plays into results. adam: capitol hill was busy with the house and senate taking up budget bills. the house actually passed not one, but two, that's right, two bills, including a continuing resolution to keep the government funded. sandra: peter barnes is live in washington for us. peter? >> adam and sandra, the house has done the work and recessed for its easter break. it passed a continuing budget refz solution to keep the government funded through end of fiscal year, in september, avoiding government shut down, which is what all parties want here. that one is headed to the president's desk for his signature. the house also approved as you mentioned on party-line vote paul ryan's republican budget which cuts 4.6
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trillion dollars over the next decade to balance the budget in part by repealing obamacare but it is dead on arrival in the democratically controlled senate. >> i would not call the house republican bill balanced. their balance says that the wealthiest americans, the biggest orporations, don't contribute to this problem at all. everything is done on the backs of our middle class families. so, mr. , president, yes, balance is an important word. it is an important word to every family, every community, every american. >> but, that did not stop paul ryan. >> the stanford economists that looked at this budget last week said, 500,000 jobs right away. $1500 more in take-home pay for families in the first year. 1.7 million jobs and 4 thou better take-home pay on average for families in the 10th year. this family will protect and strengthen medicare. it begins, yes, by repealing
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obamacare. >> right now the state of play is that the senate is still in session. it is debating the senate democratic budget, its first in four years by the way. and that budget would cut a trillion dollars in spending but it adds a trillion in new tax revenue over a decade. so, it's dead on arrival in the house, but both chambers, as you guys know have to go through this process before they can then see if they can hammer out some kind of a compromise. >> peter, how realistic, whether it is the ryan budget, how realistic is it to talk about repealing obamacare? is there enough momentum at some point they could see a total repeal or will they have to tweak it? >> you never say never, but if you have democrats in control in the senate, they won't approve it and they have the majority votes. and even if they did the president would veto it. and there are not enough votes in either chamber to override a presidential veto.
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maybe tweaks. adam: peter barnes, washington see, thank you. >> thank you. sandra: the mobile payment sector gaining traction into a multibillion-dollar industry. we'll tell you how you can make mon on -- money on the global cashless trade. adam: jeff payden of payden & regal weighs in after the bell.
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sandra: you may have noticed mobile banking gaining seem tans with 16% trusting banking on their cell phones. we have someone who says the global cashless craze has power and he has some picks with mobile banking promise. adam: joining us now, jeff reeves, investor place.com editor and just lay it out for us. who do you think will win as we all shift from using cash to pay our smartphones to pay for stuff. >> that is the billion dollar question. sandra: i beg your pardon. >> at any rate, very unclear who will be in front of this but the trend out there is one of these consumer technology things. it is also a big business trend. bill gates spoke at davos, said there are social benefits for this, people have mobility with their money. more secure than having dollar bills or plastic card in your wallet.
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sandra: is it really? i'm in cabs where they hand me the cell phone to swipe the credit card. i know there are different forms of this mobile banking but, people are still really concerned about security breaches right now. do you think we can overcome that? >> i definitely think we can. if you remember, 10, 15 years ago, people were very concerned about giving their credit card away on the internet, once society realized you unlock a huge powerful engine of commerce there --. sandra: a lot of people have gotten burned too. >> you become more intelligent consumers. businesses realize there are certain things you need to do with cybersecurity and authentication. there are practical hurdles. i will act like there is not. there are logistical hurdles and cost concerns but there is no reason why the next three, five, 10 years, this could not be a much more previous vent occurrence. look at 10 years how far we've come with cash. you pay for cheeseburger at mcdonald's with your credit card like it is nobody's business. adam: jpmorgan chase, you take a picture of a check and it is deposited.
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fear over 0, as opposed to under 40, what if someone steals my cell phone? if i use my cell phone tap something to make payment how do i protect my money if someone gets ahold of the phone? >> that is legitimate concern. online banking avenue show different levels of authentication make sure you have secure ip address. not anybody anywhere with internet connection can steal your account. that is not to say that there is not identity theft and fraud. there are people on the good side. there is lot of money to be made here. i guaranty you people will be able to protect that business once it comes out. sandra: all right. let's talk stocks. what do you do? you sound so optimistic. say i'm a a listen, i want to buy into the cashless craze. what do you recommend? >> there are couple obvious plays. visa and mastercard ridden the cashless craze last few years. that is rolling out debit cards. these are not banks. they're just to takers. every transaction done with
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visa logo on visa takes a couple ennis. whether prepaid card you buy at grocery store they get money from that. transition from prepaid card to natural app on the cell phone is natural for them. they would be ahead of the game i i would watch old movers, mastercard and visa. adam: what about companies we may not have heard of or those we wouldn't expect? i know you like intuit, and i think that as quicken but they're getting in on this. >> intuit has go payment. a nifty gadget you plug into the phone and accepts credit card. you can swipe a credit card on the phone. imagine with a vendor with a small booth at arts and crafts fair. someone selling something on the street you can accept credit cards on the smartphone with the go payment device from intuit. they digitize tax returns. why not digitize the entire commerce. adam: when i switched my quicken from pc to mac it wasn't so friendly. i hope they do better job mobile than on the mac.
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>> there are concerns there. private company, square. not publicly traded. they have partnerships with starbucks with same type of thing. starbucks is big company. square has something. there is not competition there. sandra: user error on adam part's too. there are stocks you are recommending not a straight play on the cashless craze. stocks that have been beaten up like google. you're saying these stocks could actually benefit from this as well? >> wouldn't count out these guys. there is always this rumor that apple would actually use its huge cash pile it has got. want to start an online bank. if you find a way do online banking be capital side of that be 100 billion cash in the bank. one of many rumors people talk about. they are working on google wallet to take existing credit cards and put into google device, the concerns you talk about people walk away with the cell phone, google's idea essentially aggregate all the
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information and password protect that someone walks with the phone and get on the cloud with google wallet kill all your stuff. adam: you do that already with apple. why bother with google? do no evil, people are thinking they're evil collecting all the data? >> these are concerns we have to work out with privacy and security. i wouldn't count out google or apple on this a lot of people are concerned about privacy with google glass everything else they do. i wouldn't bet against innovation and certainly wouldn't bet against the money to be made in this market. sandra: i don't anybody totally counts out apple or google. very interesting creative play from investor place.com. you're editor there. thank you very much. >> thanks for having me. adam: the fed says the u.s. economy has gotten stronger. today's economic data may back their theory but with sequester cuts just beginning to roll out and poor guidance from some of the world's largest companies, how long will it last? we'll ask top economist jeffrey cleveland. sandra: pay tv providers losing customers according to a new study.
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later in the show one of the top analysts on the street will give us a look into the future of television and tell us what companies will suffer and which ones will come up on top. my mother made the best toffee in the world. it's delicious. so now we've turned her toffee into a business. my goal was to take an idea and make it happen. i'm janet long and i formed my toffee company through legalzoom. never really thought i would make money doing what i love. [ robert ] we created legalzoom to help people start their business and launch their dreams. go t to legalzoom.com today and make your business dream a reality. at legalzoom.com we put the law on your side. and make your business dream a reality. at od, whatever business you're in, that's the business we're in
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today's market drivers. stocks losing yesterday's steam with all three major averages closing lower. the dow on track to end in negative territory for the week. its first weekly loss it would be in five weeks. materials and technology were today's worst performers. >> march manufacturing in philadelphia improved sharply hitting a three-month high. the philadelphia fed index climbing to two from negative 12.5 in february. readings above zero indicate more companies are expanding their business. and oil was the big mover in the commodities pits today. crude falling as a drop in eurozone activity damp ened prospects for energy demand in the region. oil fell $1.05 to $92.45 a barrel. adam: but the sequester, sound like a bad movie, the sequester, those cuts have only just started and this week disappointing growth figures from global giants,
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fedex, caterpillar, they're telling a different story. so how long will what a lot of people think is a recovery, how long will it last? jeffrey cleveland, payden & regal senior economist. simply, how long can it last, jeffrey? >> i think it can go on for quite some time, adam. recession risk is very low for the u.s. economy despite some of the things going on a global basis. if i can i would point to two big indicators for you. today's data on employment -- ish initial claims for unemployment benefits. >> there you go. adam: it is a mouthful, trust me. >> the four-week moving average now is at its lowest level since february of 2008. so it's not, it is not pointing in any way toward as pickup in layoffs. layoffs are very low right now. that should make us comfortable on the recession outlook front. and other one --. sandra: when you look at that fear gain, the vix,
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historic lows. people are complacent. they feel good right now but should they? the federal reserve says we shouldn't, because they keep buying, the bond buying program continues. they're still trying to stimulate the economy pecause they still see it in very weak position. why should we think otherwise? >> the fed is looking at it to have what i call the data dashboard. they're not just looking at claims for unemployment insurance. they're looking at pace of hiring. they're looking at overall unemployment rate. what they see there is room for improvement. so they want to see, they want to see a substantial improvement to use bernanke's terms and we're not quite to substantial yet. so they will stick with their bond buying program. adam: jeff, do you think some of the housing data we're getting indicates a recovery in the housing market? if you have a yes to that question, i have a follow-up. >> yes. adam: no, no, i've got a follow-up. why? why do you think? then i want to hit you with something. >> well, you know, sales are up, which is good. starts are up.
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building permits are up especially from the bottom. usually when building activity, when starts and permits are running 20% or more year on year, this is when the economy is expanding, not when it is on the cusp of a recession. adam: but here is why i would challenge you on that. let me challenge you on that. sandra: you're in trouble now. >> challenge me. adam: condo up 8.8%. single family sales up .2 of a percent. at end of the day median price for house, $173,600. at the peak of market was $238,000. we're far nationwide from getting back there. this isn't a recovery. most of the wealth that got wiped out is still in the gutter. >> you know what i think though? it is difference between levels and looking at levels we achieved in the prior peak and thinking about month to month incremental progress. so we are making progress back towards those levels. adam: will be 2142 before we get there. >> right. it is not, i don't think we can bet on, or be convinced
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there is a new boom coming in real estate. sandra: i have to jump in here. adam: she will save you pro me, jeff. sandra: i have to get in here somewhere. there is another wrench to throw in the system, this is this cyprus debacle. obviously this has got the markets worried right now. is there a chance we could see consumer americans in general fearful we could see a cyprus situation here at home and they will buckle down and not be spending as much money. >> no. i don't think so. i think cyprus is, somewhat of an isolated event. it is roiling global markets because, i think global markets, global investors generally were thinking the eurozone problems were over. they had somehow been solved and that risk was away. cyprus is a small country but a big reminder that the eurozone crisis is ongoing. and we got data out of europe this morning that also didn't help. it looks like gdp and the euro area will continue to contract and q1 and into q2. i think that is what is moving around global markets
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today. that's the big factor. so cyprus is small, but it has a ripple effect. adam: jeffrey cleveland, senior economist at payden & regal. you're a good sport for putting up with us. sandra: or you. >> thank you for having me. adam: i'm being kind to her today. sandra: a new report showing more and more people are hitting the off button and saying good-bye to traditional cable. we'll tell you which stocks you should cut the cord on and which you should buy as the trend continues. adam: plus is it a slump or the perfect chance to buy? copper has seen a big downturn lately but improving economic data has some investors wondering if it is too cheap to pass up? jeff flock in a supersecret location investigates just ahead. [ male announcer ] you are a business pro.
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copd includes chronic bronchitis and emphysema. spirivhelps control my copd symptoms by keeping my airways open for 24 hours. plus, it reduces copd flare-ups. spiriva is the only on-daily inhad copd maintenance treatment that does both. spiriva handihaler tiotropium bromide inhalation powder does not replace fast-acting inhalers for sudden symptoms. tell your doctor if you have kidney problems, glaucoma, trouble urinating, or an enlarged prostate. these may worsen with spiriva. discuss all medicines you take, even eye drops. stop taking spiriva and seek imdiate medical help if your breathing suddenly worsens, your throat or tongue swells, you u get hives, vision changes or eye pain, or problems passing urine. other side effects include dry mouth and cotipation. nothing can reverse copd spiriva helps me breathe better. (blowing sou) ask your doctor about spiriva.
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sandra: here's your fox business brief. it was a seaed of red down on wall street as the european crisis once again weighed on the markets in the u.s. the dow finished 90 points lower at 14,421. the trouble in cyprus continues as standard & poor's downgrading the country's long term sovereign credit rating further into junk territory citing problems with its banking sector. s&p says the country's credit standing is heavily linked to its banks which are not able to meet its needs. the banks capital is five times more than the gdp. authorizing a four for one stock split. the company's stockholders also approving a proportional increation in the number of authorized shares of its common stock from 400 million to 1.6 billion. shathat is the latest from the fox business network biz biz
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sandra: a new report today showing more and more people may be ditching their pay tv services. subscribers totaled 100.4 million in 2012 of while the number was up slightly from 2011, it was the lowest increase the pay tv industry has seen since 1999. adam: so big question, is it time to cut the cord on cable media stocks? joining us is the senior media an entertainment analyst for s&p capital iq. tuna, thanks for joining us. simply put, content is king, who would you cut, who would you keep? >> indeed content is king. that's why we're recommending a lot of pure content providers. as you alluded to we think the balance of power is shifting in favor of content providers. one of the reasons that's happening is because of the pressure that the distributors are facing. the distribution, pay tv landscape is saturated t has been for a while. guys make a online video what they're doing to highlight potential for
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consumers to choose much cheaper options especially very difficult economic environment. sandra: so, tuna, you're saying this move away from pay tv. will hit every provider than one. >> comcast, the reason they bought nbc universal to protect themselves a little bit on the distribution exposure that they have. what you're seeing guys like disney and cbs and parent company news corp are considered some of the premier content providers out there, someone like content nirvana, right? so the industry is going through a renaissance where a lot of company we're recommending leveraging content and monetizing them in a very, very fragmented landscape where the consumer has a lot more options than ever before. so i think the balance of power is gradually and will continue to shift in favor of branded entertainment content. adam: i think jay leno would agree with you on nbc call because he thinks they're
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extinct. let me ask you this. what content creators do you like? i think we're one of them, news corp, the parent company of fox business. who do you like? what companies do you really see as doing well because of this? i know that the time warner pays us to carry programing. so if they're going down, that is not good for us, is it? >> well, you know, so, we're recommending disney, strong buy on cb of the, disney buy, news corp, buy. time warner, we see a lot of common themes on the companies that i just mentioned and not just on the content side but also it we see a lot of acite tiff acquisitions. -- accretive acquisitions. spin off news corp education business and time warner publishing. a lot of companies have significant amount of cash, very solid balance sheet, returning capital to shareholders. international expansion is another theme. all told investors are really, very, very happy with the performance of these stocks over last several years consistently
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beating most of the major benchmarks. sandra: a stock we all watch often is netflix which i'm looking at which suffered a down day today. it is $181 a share. i wonder how they could possibly benefit from the move away from pay-tv services? >> netflix entered the fray to revolutionize the model, the traditional television model. taking people away from appointment viewing and trying to provide you content when you want it and how you want it. i think internet television is here to stay. it is pretty early to say that they're going to, you know, overtake traditional television anytime, soon. we think it is very complimentary. you've seen netflix and guys like disney and dreamworks animation strike what we consider to be potential ground breaking content deals, becoming much more aggressive to buy content. original programing they're starting to be much more aggressive the look for them to launch a lot more shows. you see netflix position testimoniselves side by side
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to hbo and showtime. over time it will get much more competitive for players in the space. adam: do you see in the future some it distributors making acquisition moves on some of the content providers to protect themselves the way comcast did? >> i think the jury is out. comcast seems to pull it off. a lot of skeptics think virt call integration is way to go. we've seen a lot of companies go other way and cablevision spinning off amc networks and liberty spinning of starz. there is value to being a very pure content provider. if you're a guy like comcast, largest cable operator you could make the argument the benefits could pay off for them especially on sports side. they're looking networks and on demand offering that could be potentially very, very impactful in the consumer landscape. sandra: we'll leave it at that. thank you very much. >> you're welcome. adam: despite a small rebound yesterday, copper still sitting at seven-month lows. improving economic data here
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and all places china have a lot of people wondering if the metal is priced for perfection? jeff flock is live at the source. jeff? >> look at all of this copper in storage. some of billions of dollars now stockpiled around the world. one of the reasons those prices are low put is this the bottom? and the time to get into the market. if you think so and want to do so, stay tuned. we'll show you how to get into the copper play surrounded by this stuff. there is gold in that there copper. ♪ .
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adam: with new housing construction on the upswing and signs of improvement in the manufacturing industry many investors are wondering if a major turnaround is in store for copper. sandra: the commodity hit a seven-month low low earlier this week. jeff flock is in a suburb of chicago with the story, jeff? >> they like to keep quiet exactly where it is because this stuff is so valuable. look coming off the roller here. this is in a slitting machine. copper is in everything, from telecommunications to power generation, automobiles, you name it, computers, everywhere. look at the one-year. and as sandra pointed out,
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seven-month low. it was august of last year that prices got this low. but if you look at the 5-year, you know you see a wild ride for copper, everything from a buck and a half, to, back in 2008, 2009, to, 4 1/2 dollars. i've got the principles of u.s. copper and brass in, outside chicago. somewhere outside chicago they like to keep a low profile. i have to ask you first, matt, where do you see the metal going right now? we're very busy, very enthusiastic for 2013. >> this is a huge indicator of economic activity. >> it sure is. we have a lot of great customers and there they're very enthusiastic and busy as well. >> i want to look at vary russ ways to play copper. there is cu which is mining refining stock. index. then there's one that just does copper futures, the jyc. it can play individual stocks like freeport-mcmoran. we've got a huge amount of
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copper in storage right now. is that going to hold prices down you think? >> well, historically, yes, it will. however, for us, our inventory is what causes prices to go up or down. >> because you then have enough inventory it be able it respond to growth when it comes down? >> ought sly, yes. >> gentlemen, i appreciate it. this company has been in business since 1925. sour runned -- surrounded by copper and a little bit of brass too. maybe it is time to think about copper. adam: jeff flock. that's good. seeing money in them their hills. love it they can't tell them where it is. sandra: who needs hands. a new invention let's people brush their teeth in a whole new way, using the your tongue. no brush required. we'll have that story ahead. ♪ . girl vo: i'm pretty conservative. very logical thinker. (laus) i'm telling you right no the girl back at home would absolutely not have taken a zip line in the jung.
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